TY  - JOUR
AU  - García-Cicco,Javier
AU  - Pancrazi,Roberto
AU  - Uribe,Martín
TI  - Real Business Cycles in Emerging Countries?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12629
PY  - 2006
Y2  - October 2006
UR  - http://www.nber.org/papers/w12629
L1  - http://www.nber.org/papers/w12629.pdf
N1  - Author contact info:
Javier Garcia Cicco
Duke University
Department of Economics
213 Social Science Building
Box 90097
Durham, NC 27708
E-Mail: javiergarciacicco@hotmail.com

Roberto Pancrazi
Manufacture de Tabacs
21 Allees de Brienne
Durham, NC 27708
31000 Toulouse, France
E-Mail: roberto.pancrazi@tse-fr.eu

Martin Uribe
Department of Economics
Columbia University
International Affairs Building
New York, NY 10027
Tel: 212 851 4008
Fax: 212 854 8059
E-Mail: martin.uribe@columbia.edu
AB  - We use more than one century of Argentine and Mexican data to estimate the structural parameters of a small-open-economy real-business-cycle model driven by nonstationary productivity shocks. We find that the RBC model does a poor job at explaining business cycles in emerging countries. We then estimate an augmented model that incorporates shocks to the country premium and financial frictions. We find that the estimated financial-friction model provides a remarkably good account of business cycles in emerging markets and, importantly, assigns a negligible role to nonstationary productivity shocks.
ER  -